TNAG-0636-FCO40-784-Supplies-of-electricity-for-Hong-Kong-1977 — Page 112

CONFIDENTIAL

I ASKED SIR LAWRENCE ABOUT HIS SUGGESTION TO THE PRIME MINISTER THAT THE PROJECT BE LINKED WITH COAL PURCHASES FROM CHINA. HE ACCEPTED THAT THERE WOULD BE FORMIDABLE TRANSPORT PROBLEMS EVEN IF THE CHINESE WERE ABLE TO INDICATE THEIR WILLINGNESS TO SUPPLY COAL WITHIN THE TIME SCALE SET BY CLP'S NEED TO PLACE ORDERS BY THE END OF 1977. THE CHINA CARD WAS SUGGESTED AS PART OF THE SMOKESCREEN TO CONCEAL THE LIKELY PRICE DIFFERENTIALS BOTH SIR LAWRENCE AND WEEDON CONSIDER THAT OFFERS TO PROVIDE NEW TRANSMISSION EQUIPMENT AND THE NEW CLP PUMP STORAGE ARE MORE IMMEDIATELY RELEVANT IN TERMS OF AN OVERALL BRITISH ENERGY PACKAGE. 1 SHOULD BE GRATEFUL IF YOU WOULD LET ME KNOW WHETHER YOU REQUIRE ANY FURTHER INFORMATION ABOUT ANY OF THE ABOVE SCHEMES WHICH IS NOT ALREADY AVAILABLE FROM GEC IN LONDON.

6. STONES, CHIEF ENGINEER OF CLP, WHO PERSUADED SIR LAWRENCE TO AIM FOR A NEW STATION RATHER THAN THE ADDITION OF TWO TURBINES TO THE EXISTING TSING YI PLANT IS IN AUSTRALIA FOR A WEEK (REPORTEDLY EXAMINING THE SUCCESS OF GEC'S BID FOR THE MELBOURNE STATION) BUT I HAVE AN APPOINTMENT TO VISIT TSING YI WITH HIM ON HIS RETURN.

MARCH

FILES

HKGD

FED

TRED

FRD

PS

PS/MR. JUDD

PS/LORD GORONWY ROBERTS PS/PUS

MR.CORTAZZI

MR.BUTLER

MR.MURRAY

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CONFIDENTIAL

ADDITIONAL DISTRIBUTION

HONG KONG POWER STATION

PROJECT

MR, KEMP

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ECGD